BofA's Thoughts On Google's Daydream, Allo, Updates To Home

Following the commencement of Alphabet Inc GOOGL GOOG’s Google developer conference, which already saw the company announce a new Android OS, a new Daydream VR platform, an update to Google Home and the presentation of the Allo messaging app, analysts at Bank of America Merrill Lynch reiterated a Buy rating and $925 price target on the company’s Class A stock, and shares some thoughts on the aforementioned news.

While some of the above-mentioned initiatives (like Google Home, the messaging app and virtual reality) seemed to be playing catch-up with competitors, “most integrate Google’s advanced search and AI (artificial intelligence) capabilities which we think could potentially differentiate its products vs the competition,” the experts said.

The report pointed out a few details the products featured. First off, they went into VR, noting that the new Daydream was built to work with the new Android N, coming out in late summer, and will only work with certain phones from Samsung, HTC, LG, Xiaomi, Huawei, ZTE, Asus and Alcatel. For their part, media and gaming companies like Netflix, Hulu, HBO, IMAX, Ubisoft and Electronic Arts will be offering apps for the new headset.

As Google voice arrives to Google Home, and taking into account “Google’s search and machine learning capabilities,” the analysts believe “Google Home could offer more functionality than Amazon’s Echo for query related activity.”

Finally, the experts wen into Allo, which could be seen as a potential competitor to Facebook Messenger, WhatsApp, and SnapChat. And, although it offers even more functions than them, one question lingers: will it be any fun?

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.